At the sidelines of the 'Conference on Securities Market 2008 organised by National Institute of Securities Markets (NISM), CB Bhave, chairman, Sebi, told reporters that the regulator is exploring the possibilities of allowing more market players including NRIs to participate in the currency futures. Currently, only a certain players are allowed in the currency futures market. The scope of more market participants can be expanded, he said.
It may be mentioned here that currently the rupee and dollar are allowed in the currency futures market. The regulator is looking how futures are functioning and the investment pattern in the futures market.
Earlier this year, TC Nair, wholetime member of Sebi, said in New Delhi that the markets regulator is contemplating of permitting FIIs to trade in currency futures which was launched at NSE in August last week. Currently, there are more than 1,400 FIIs registered with Sebi. The financial institutions, banks and retail investors are allowed to participate in the trading. The currency futures is settled in cash. Another bourse, MCX and Bombay Stock Exchange (BSE) has also introduced the currency futures. However, the volume is comparatively low in BSE.